PORTLAND, Ore. — (BUSINESS WIRE) — November 13, 2014 —
Electro Scientific Industries, Inc. (Nasdaq:
ESIO), the premier source
for innovative laser-based manufacturing solutions for the
microtechnology industry, today announced that it has entered into a
definitive agreement to acquire Wuhan Topwin Optoelectronics Technology
Co., Ltd. (Topwin). The acquisition brings together the deep technology
expertise in laser microfabrication from ESI, and one of the fastest
growing, innovative laser design and manufacturing systems companies in
China.

Topwin brings a solid portfolio of mid-range laser technology products
that serve the needs of the consumer electronics industry in ITO
patterning, PCB cutting, precision welding, and a variety of marking and
cutting applications. Designed in China for the China market, these
products deliver excellent capability in a low-cost platform. Topwin is
located in Wuhan, Hubei Province, China, the heart of China’s
Opto-electronics knowledge center.

"To compete and win in the fast-moving China market, ESI must design,
build, and sell locally. The acquisition of Topwin gives us that
immediate capability and significantly expands our footprint in China,
the largest laser systems market in the world," stated Edward C. Grady,
CEO of ESI. "With complementary capabilities, this acquisition expands
our product portfolio, enables faster time to market and allows ESI to
provide a more complete set of laser-based manufacturing solutions
consistent with our focus on total-cost-of-ownership, to customers in
China and throughout the region."

"We are pleased to join ESI as an essential part of the overall business
across the Asia-Pacific region. Our design and manufacturing expertise
with a deep understanding of the specific China market requirements,
coupled with ESI’s strong technology and global reach, creates an
unparalleled opportunity to address the growing market for laser
microfabrication tools," said Dr. Hu Bing, General Manager of Topwin.
"We believe joining ESI creates the best result for existing and future
customers, employees and shareholders of both companies, and represents
a significant step forward in expanding the use of our capabilities in
China and across the region."

The transaction is subject to customary government approvals and is
expected to close in the first calendar quarter of 2015.

About ESI, Inc.

ESI’s integrated solutions allow industrial designers and process
engineers to control the power of laser light to transform materials in
ways that differentiate their consumer electronics, wearable devices,
semiconductor circuits and high-precision components for market
advantage. ESI’s laser-based manufacturing solutions feature the
micro-machining industry’s highest precision and speed, and lowest total
cost of ownership. ESI is headquartered in Portland, Ore., with global
operations from the Pacific Northwest to the Pacific Rim. More
information is available at
www.esi.com.

Forward-Looking Statements

This press release includes forward-looking statements about the
expected timing of closing and the markets we serve. These
forward-looking statements are based on information available to us on
the date of this release and we assume no obligation to update these
forward-looking statements for any reason. Actual results may differ
materially from those in the forward-looking statements. Risks and
uncertainties that may affect the forward-looking statements include:
the risk that the transaction fails to close; the risk that we fail to
successfully integrate the Topwin business.